Importing and exporting is a very influential activities on a nation’s economy, a country with too much importing dooms its domestic businesses to fail. A country with too much exporting will often realize that it is depriving its citizens of new technologies, trading long-term progress for short-term financial gain. As such, it is important for countries to strictly regulate a trade balance, With this in mind, the following paper will relay information gathered in an interview with a local business’s director of operations involved in importing to provide insight into the effect of government intervention on foreign trade.
Special Note It is important to note that this business manager would not speak with me unless I promised him anonymity, The company has a strict non-disclosure policy that prevents him from providing any information in any capacity that can be traced back to the business.
As such, I promised I would not include his name or his company’s name, However, he did say that because it would be kept anonymous, he could be more honest in his responses than he might have been if he had to worry about maintaining a positive public relations image.
I will refer to my interviewee as Mr. X for the remainder of the paper. Company This particular company is involved in providing machinery to other businesses.
They build custom machines and devices for companies in the construction and manufacturing industries. In order to do so, they import parts from all over the world, and then assemble the machines to sell to other businesses. Sometimes, Mr. X explains, a company will order something that they can simply buy from a supplier without modifying or assembling it at all.
In this case, they simply import the product, package it with their logo, and sell it at a price mark up. Role of Government After the initial information-gathering process determining what Mr. X and his company do in order to turn a profit, I asked him about how him and the other upper management view the role of the government in relation to their business. He explained that the government is seen largely as an enemy which prevents the company from doing a lot of things that it would otherwise do to be more profitable, He went on to say that he understands the need for government regulation from a macro standpoint. However, from the perspective of him personally in his capacity as an operations manager, the government serves largely as a regulatory body which limits a lot of what the company can do. New laws are being passed all the time which are seemingly contradictory and are very difficult to keep up with.
He believes that the government is largely inefficient in its role, but understands there are a lot of moving parts that result in this inefficiency He sees lawmakers as people trying to keep up with the demands of the citizens and the economy, but as people who are ignorant of the realities of their laws. The lawmakers, according to Mr. X, don’t realize the burdens that these laws place on businesses, and thus they are often hurting the business sector more than they are helping them. Most Relevant Laws I went on to ask Mr, X about what he sees as the most relevant laws to his business. He explained that laws which regulate tariffs and quotas are the most relevant. Tariffs, according to Mr. X, hike up his supply prices a great deal, and can make it difficult for him to turn a profit, His business operates on seeking out the cheapest suppliers for certain parts globally.
However, even when he finds a very cheap price, often times he will be forced to go elsewhere as the tariff for that country is so high. Mr. X stated several times that the tariff setting system seems highly discriminatory and is too influenced by petty political interests rather than logic. He had similar opinions about quotas. Government: Helpful or Harmful? After a lengthy discussion, I asked whether this manager thought that governmental trade restrictions helped or harmed his business. Surprisingly, given the generally negative tone Mr. X had taken thus far on the impact of the government, he said it both helps and harms his business. Mr. X believes that the government is extremely restrictive and can be nonsensical in their foreign trade policies. He must keep up to date on every relevant law change for almost every major nation, and thus Mr. X understands the ins and outs of these laws and how they often seek to do conflicting things simultaneously. That being said, Mr, X went on to describe how most of these laws and ideology behind them are necessary in order to ensure the long term health of the economy.
He also stated that his business would not exist and he would not have the job he does without the existence of these governmental rules. Mr. X said that if there were no government restrictions on foreign trade, that foreign companies would dominate the market with their cheap products. This would be great for consumers in the short run, but would ultimately cause our economy to fail and would hurt every citizen in the long term. This interview was very eye-opening in terms of how businesses actually may view the government. Mr, X shed an honest light on the relationship he has with the government and their foreign trade restrictions and showed that although he understands the necessary role of the government, he often sees lawmakers as the enemy. Hopefully, the government will increase in its efficacy and can find a good balance between protecting the economy and allowing businesses to be successful.